Question:
Write an essay on the Grab Case on Entering the Taiwan Market.
Memorandum
To:
From:
Date:
Subject:
The purpose of this particular memorandum is to draw your attention to the fact that your app cab company, Grab is planning or is fully prepared to enter the Taiwan market in just a few days. This memorandum will serve as a detailed guideline to your firm on the risks and advantages that Taiwan market possesses for the company (Ang, Benischke, & Doh, 2015).
It has been a long time that GRAB has started its operations in South East Asia and has become one of the leading names in the world of Taxi. However entering Taiwan to carry business is not that easy as it seems. The market is controlled by China and a business organization must have a clear knowledge about the local cultural, business and the policies and regulatory norms of the mentioned place and international remittance systems are highly developed and offer a vast range of investment opportunities for different organizations. GRAB’s entry into the Taiwan is thus much easier. However the following research has been quite effective to project Taiwan as a happening place to carry on business.
Some of the strategies adapted by GRAB car in Taiwan are as follows;
Providing Quality Customer Service- The app cab taxi service has the aim to provide a safe, hassle free and speedy taxi ride to any of the passengers who avail the services of the following taxi brand (export.gov/article). The safety measures are taken well care of as the driver’s details, address, phone number, emails, past history of the organization are checked thoroughly and then only the assessment is done. The passengers have also a SOS button in their mobile app which they can press if they feel that their safety is being violated and they can also rate their driver based on their experience. The mentioned App Cab service providers provides quality service to the customers and standing out from the rest of the providers offers the customers with both cash and card payment options.
Utilizing the Large Customer Base- The large customer base of the following organization will help them to allocate the best possible resources to make their app cab company the largest in Taiwan and ensuring the greatest chunk of profit in Taiwan (www.doingbusiness.org/data). Instead of building a new app the company has integrated Grab car with the latest mobile app for pulling different customers under its fold. The current users have the option to select the Grab car service if they are not able to catch the taxi.
Catering to the needs of the individuals- Grab car provides different customers with different offers. The presence of luxury limousines and BMW’s are useful to carry VIP’s and luxurious people. There are also provisions for normal cars and buses. The arrangement of large cars like buses is meant for families or any other groups with large customer demand.
Understanding the Market- The management of the company aims to understand the market of Taiwan in a better way that will help them easily formulate a strategy and implement them in the business to achieve success (www.doingbusiness.org/data).
The aim of the project was to determine the market of Taiwan. It was seen that UBER has a large share of the taxi market along with some local taxi operators. Taiwan market is slowly becoming liberal after some vast and significant changes that have been undertaken by the Chinese Government in the recent years. The liberalized approach of the government coupled with a wide range of opportunities has transformed the business scenario of the mentioned country. The presence of UBER and some other app cab companies will also help GRAB to enter into a competitive market and make a good name with the services that it provides. However the main reason for which GRAB is highly recommended to enter the Taiwan market is its special luxury services that include vast range of super luxury fleet of different imported cars used to escort VIP’s and other dignitaries. The research was conducted by staging a few interviews with the service users and some of the drivers of UBER to get a clear and transparent view on the popularity of the mentioned taxi operating company and its success factors.
Political Analysis- Political Environment of the mentioned country has seen a plethora of changes. After the change of the Government in the country there has been some serious changes in Taiwanese political environment (www.export.gov/article). The country is slowly moving towards a democratic system. The liberal approach of the government of Taiwan has been slowly increasing and companies are finding it much easier to carry on business in the country. Many companies are opening its branch offices in the company which is considered as an recognized office and is subjected to paying tax based on the policies and rules of Taiwan.
Economic Analysis- As mentioned in the political scenario the country is also experiencing a sea of change in the economic sector. The average earnings of every single household have seen an increase which implies to a better standard of living. The unemployment rate is much lower compared to the other countries of Asia. Earning a decent source of livelihood helps the people to have a strong purchasing power.
Socio Cultural Analysis- Taiwan comprises most of the people from China and thus their social and cultural activities are much similar to that of China. There are both Chinese firms in the market and some other Asian firms that enjoy a quality brand loyalty in the market. There are also different western firms in the market which helps Taiwan to have a feeling of the western goods (www.doingbusiness.org/data).
Technological Analysis- Technology plays an important role in the success of the firms in the market. Taiwan has a standard set of Technological infrastructure that cater to the needs of the company easily. Presence of high level of mobile, internet, television related activities have been useful for the success of the companies in Taiwan.
Environmental Analysis- The companies that try to operate in Taiwan have to comply by the major policies and procedures to make sure that the activities of these companies and organization have little or no impact to the environment (www.grab.com). The waste disposal control act, Pollution control act are some of such laws that are quite effectible for the companies.
Legal Analysis- As said earlier the companies are charged taxed once they establish their business in Taiwan. The companies that do not have a head office in Taiwan but derive different resources from the mentioned country can be charged with the actual corporate income.
The candidates, competitors and business partners of the company must be chosen in advance to make sure that the organization must not face any hiccups while starting its operation in the country.
|
CANDIDATES |
Drivers, operators, technicians and other people related to maintenance |
|
COMPETITORS |
UBER, GO-JEK |
|
BUSINESS PARTNERS |
Stakeholders, Investors |
The identification of the local stakeholders, competitors and the business partners needs to be done in tandem to identify the business opportunities in the presence of other similar brands. The presence of UBER and GO-JEK poses a potential threat to the organization. UBER in special is a tough nut to crack as it already provides a huge competition to the mentioned company. It is highly recommended for GRAB to enter the market of Taiwan as because the market offers exactly the same requirements as demanded by the app cab company. The absence of too many app cab services, capability to provide luxury car services and the huge market of Taiwan are reasons enough for the company to start business in this part of South East Asia. It can use some tactical marketing strategies to begin its operation. At the beginning only they can use discount pricing strategies to enter the market and establish a foothold in the market. The discount pricing strategy will be helpful to attract customers of Taiwan who avail cab services (www.export.gov/article).
The detailed analysis of the report has shown the capability of GRAB in providing app cab services and luxury car services in different markets of the globe. According to Wang & Lestari (2013) the presence of a large number of Vehicles will help the organization to capture the market easily whereas the presence of a large number of investors will boost the management of the organization to make sure that they do not face any shortfall in funds. The industry standard and the government rules in the country are standard and can be said to be company friendly in nature. The policies and regulations are equally friendly which will help GRAB to smoothly carry out the operations in the new market. On the other hand the presence of large number of fleets in their ranks will help GRAB to attract more customers easily at a given time. The management of the company has been testing the commercial use of electric cars which would help them to sustain in the coming future (www.grab.com).
Therefore it can be said that it is one of the golden opportunities for GRAB to enter the Taiwan market as because South East Asia offers a huge round of scope for emerging companies like GRAB to earn huge revenues (www.doingbusiness.org). The following report points to a positive feedback for the management of GRAB to consider its commencement of operations in the mentioned Chinese territory. The political, social and technological factors of Taiwan has multiple opportunities is quite industry friendly and will pose no such problems for the beginning of the operations of the app taxi operator in Taiwan. The commencement of commercial operations will open the gates for GRAB to try other potential markets of Asia and expand its business boundaries gradually.
References
“An Analysis Of Taiwan’S Distribution System | International Journal Of Retail & Distribution Management | Vol 29, No 2.” Emeraldinsight.com. N.p., 2017. Web. 11 Nov. 2017.
“China Taiwan Market Entry Strategy And Market Research.” Pamirlaw.com. N.p., 2017. Web. 11 Nov. 2017.
“Doing Business In Taiwan, China – World Bank Group.” Doingbusiness.org. N.p., 2017. Web. 11 Nov. 2017.
“Drive Or Ride With Uber In Taipei.” Uber.com. N.p., 2017. Web. 11 Nov. 2017.
“Ride Hailing Platform: Car And Taxi Booking | Grab.” Grab SG. N.p., 2017. Web. 11 Nov. 2017.
“Taiwan – Market Entry Strategy | Export.Gov.” Export.gov. N.p., 2017. Web. 11 Nov. 2017.
N.p., 2017. Web. 11 Nov. 2017.
Wang, K. J., & Lestari, Y. D. (2013). Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market. Journal of Business Research, 66(12), 2444-2450.
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